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Xenova Group PLC (XEN)

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Tuesday 31 August, 2004

Xenova Group PLC

Facility Sold

Xenova Group PLC
31 August 2004

                                Xenova Group plc



                      Canadian Manufacturing Facility Sold



Slough, UK, 31 August 2004 - Xenova Group plc (London Stock Exchange: XEN;
NASDAQ: XNVA) announced today that it has sold its manufacturing facility in
Edmonton, Canada, to QSV Biologics Ltd (QSV) for C$7.0 million (£2.9 million).



The consideration comprises an initial payment of C$5.0m in cash payable upon
completion, and further deferred consideration of C$2.0m payable in two equal
secured promissory notes maturing 12 and 18 months following completion.  The
proceeds from this disposal will be used to fund expenditure relating to the
Group's prioritised programmes.  Net assets disposed as part of the transaction
amount to C$6.6 million (£2.7 million).



In addition to the sale of the facility, terms have also been agreed for a
manufacturing and supply contract with QSV for TransMIDTM which is presently
under development in Phase III clinical trials.  The annualised reduction in net
operating expenses as a result of the disposal, ignoring the impact of the
manufacturing contract, will be approximately £1.8 million.  All of the   Xenova
employees, in total 30, transferred to QSV upon completion, including those
involved in the production of TransMIDTM .



David Oxlade, Chief Executive Officer said, 'We are very pleased to have reached
this agreement with QSV.  The sale of this facility is the third disposal
announced so far this year and brings to an end the current plans to release
facilities.  The manufacturing contract provides us with security over  the
production of our lead drug TransMIDTM which recently entered Phase III clinical
trials.'



Contacts:


Xenova Group plc                                         44 (0)1753 706600
David A. Oxlade, Chief Executive Officer
Daniel Abrams, Finance Director
Veronica Cefis Sellar, Head of Corporate Communications


UK - Financial Dynamics                                  +44 (0)20 7831 3113
David Yates
Ben Atwell


US - Trout Group/BMC Communications                      1 212 477 9007
Media: Brad Miles
Investors: Lee Stern





Xenova Group plc is a UK-based biopharmaceutical company focused on the
development of novel drugs to treat cancer and addiction with a secondary focus
in immunotherapy.  The Company has a broad pipeline of products in clinical
development, including three cancer programmes:  its lead product TransMIDTM,
for the treatment of high-grade glioma, is in Phase III trials, and its novel
DNA targeting agents and XR303 are both in Phase I for cancer indications.
Xenova is also developing two therapeutic vaccines for cocaine and nicotine
addiction, which are in Phase II and Phase I trials respectively.  Quoted on the
London Stock Exchange (XEN) and on NASDAQ (XNVA), Xenova employs approximately
105 people throughout its sites in the UK and North America. (Reuters XEN.L;
Bloomberg XEN LN)

For further information about Xenova and its products please visit the Xenova
website at www.xenova.co.uk.



QSV Biologics Ltd, based in Edmonton, Canada, provides a full range of mammalian
cell culture and microbial fermentation related biopharmaceutical contract
manufacturing services for pre-clinical research, Phase I, II and III clinical
trials materials as well as commercial materials to Canadian, US and European
biotechnology firms with protein therapeutics in development. QSV is a
dedicated contract manufacturing operation. More information can be obtained
from www.qsvbiologics.com.





Disclaimer to take advantage of the 'Safe Harbor' provisions of the US Private
Securities Litigation Reform Act of 1995. This press release contains '
forward-looking statements,' including statements about our ability to realize
cost savings. Various risks may cause Xenova's actual results to differ
materially from those expressed or implied by the forward looking statements,
including: unexpected costs and delays, adverse results in our drug discovery
and clinical development programs; our dependence upon strategic alliance
partners to develop and commercialize products and services. For a further list
and description of the risks and uncertainties we face, see the reports we have
filed with the Securities and Exchange Commission.  We disclaim any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.


                      This information is provided by RNS
            The company news service from the London Stock Exchange